Westfield Southcenter operator: Malls need to adapt as commodity businesses are 'smashed by the internet'

While brick-and-mortar retailers have taken a beating in recent years, Westfield Corp., one of the largest shopping center owners and managers in the world, isn't worried about the future of its malls.

Westfield operates Southcenter Mall in Tukwila and the company's co-CEO Steve Lowy told Fortune that staying relevant is a matter of adapting to the changing times.

"We’re fixated on food and leisure entertainment because you cannot do that on (a smartphone) – you go there to enjoy with your friends and family and it keeps you there longer. That's what it’s about," Lowy told Fortune. "You just have to get out of the commodity business. If you’ve got a commodity, you’re going to be smashed by the internet."

Large spaces left by department stores should be filled with stores like H&M, Zara and Uniqlo, he said. Other struggling retailers are being replaced with upscale restaurants, gyms and other non-commodity driven destinations.

This is common theme among retailers trying to make it work in a changing retail environment.